heimstaden bostad ab interim report
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Interim report
2019Heimstaden Bostad AB
JANUARY – SEPTEMBER
Published 25 October 2019
The period in briefJanuary – September 2019
• Rental income for the period increased to SEK 3,030 million (2,303)
• The real letting ratio for housing was 99.2 percent (-)
• Net operating income for the period increased to SEK 1, 739 million (1,301)
• Net financial items amounted to a negative SEK 872 million (549)
• Profit from property management, adjusted for currency effects on loans, amounted to SEK 893 million (747)
• Changes in values of properties amounted to SEK 3,324 million (1,977)
• Profit for the period amounted to SEK 2,904 million (2,322)
• Property acquisitions during the period amounted to SEK 10,163 million (20,029)
• Cash and cash equivalents amounted to SEK 2,381 million (1,894)
• Unutilised credits amounted to SEK 8,998 million (0)
• Profit per ordinary share amounted to SEK 1, 313 (979)
Comparison amounts in parentheses refer to the corresponding period in the preceding year unless otherwise stated.
2015 2016 2017 2018 2019
Q3
Full year Full year Full year Full year
0
20,000
40,000
60,000
100,000
80,000
INVESTMENT PROPERTIES, Q3 (SEK MILLION)
2
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Key dataJanuary – September 2019
PROPERT IES
2,953 thousand m2 41,308983 2,592
Investment properties Proportion living area
Area Number of apartmentsNumber of properties Number of premises
2018, 2,628 thousand m2 (up 12%) 2018, 37,337 (up 11%) 2018, 916 (up 7%)
2018, 89%
2018, 1,995 (up 30%)
OPERAT IONAL FINANCIAL
SEK 3,030 million
SEK 1,739 million
57.4 %
SEK 3,324 million
SEK 693 million
99.2 %
BBB- SEK 38.8 billion
52 %
2.1X
SEK 2,381 million
35 %
Rental income
Net operating income
Surplus ratio
Value change in properties
Cash flow from operating activities
Real letting ratio for housing
S&P rating Equity
Loan-to-value ratio
Interest coverage ratio
Cash and cash equivalents
Loan-to-value ratio, secured loans
2018, SEK 2,303 million (up 32%)
2018, SEK 1,301 million (up 34%)
2018, 56.5%
up 3.8% in 2019
2018, negative SEK 199 million
includes only market-related vacancies
Credit rating according to Standard & Poor’s
2018, SEK 72.3 billion (up 24%)
2018, SEK 31.9 billion (up 21%)
2018, 51%
2018, 2.6x
2018, SEK 2,313 million
2018, 55%
SEK 90 billion 89%Market value of Heimstaden Bostad’s property portfolio.
Heimstaden Bostad’s property portfolio consists mainly of housing.
3
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Friendly homes and soft targets provide strong key data
Is it possible to combine targets concerning employee well-being or
our customers’ satisfaction with traditional key data on growth and
profitability? If you ask us at Heimstaden, the answer is: Absolutely!
We would even claim that focusing on soft targets and a high level of
customer and employee satisfaction is prerequisite for the company to
be able to achieve a stable and favourable profitability and return for its
shareholders in the long term. This is why we invest more energy than
many other property companies into issues of social sustainability,
health and customer satisfaction. Heimstaden Bostad is, and shall be,
the friendly housing company that contributes to fair social development
and a sustainable future for upcoming generations. Although these may
seem like big words, they are a central part of our operations.
This is why our “HOMETOWN days” in Malmö in September were so
important. We gathered more than 430 of our employees from Sweden,
Norway, Denmark and the Netherlands to immerse ourselves in Heim-
staden Bostad’s vision, company culture and the words that express
our values. This forms the foundation of our continued journey of growth
and our constant focus on providing friendly and considerate housing
for all of our tenants.
For me, it was inspiring to hear colleagues in customer service, leasing,
property management and administration talk about their daily work
and their desire to continue strengthening our level of service to our
customers. In his lecture, Jonas Eriksson, a Swedish referee in the
football World Cup, also asserted that teamwork is absolutely crucial
for a successful result.
Towards a leading digital position
Good teamwork is also important as we now digitise our operations at
an accelerating rate. As a property company, digitalisation affords us
new opportunities to strengthen our communication channels and,
consequently, our service and proximity to our customers. The digitali-
sation process also offers opportunities for efficient property operation
and smart homes, provides conditions for shareconomy and strengthens
social interaction.
Right now, we are building our digital platform and infrastructure with
the ambition of introducing a global digital ecosystem that attracts
customers, employees and partners and that they appreciated.
The objective is clear: We will attain the leading digital position in our
4
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Porcelænshaven, Copenhagen
industry. Follow us in the future as we launch new and innovative
digital solutions.
Biggest in Denmark
In the past quarter, we took possession of contracted new production
projects with a total 344 apartments in Denmark, gaining a long-awaited
addition of terraced house apartments, ordinary apartments and
student apartments there. We are now Denmark’s largest owner of
residential apartments. At the same time, we continue to build up our
proprietary management organisation in the country and to establish
regional/local administrative offices. We are continuously replacing
external property management agreements with in-house property
management and maintenance personnel to deliver more cost-effective
and local customer service with a high level of quality and consideration.
Before the end of 2020, we will have achieved this objective.
In Sweden, tenants have moved into the first phase of the Fasanen
neighbourhood in Burlöv. All 105 apartments, built with investment
grants and with a rent of SEK 1,450 per square metre and year for a
77 square-metre apartment, were fully let several months before tenants
began moving in. The level of interest in stages 2 and 3, with 170 apart-
ments, is exceptional.
In the past quarter, Heimstaden Bostad entered a joint venture with
Magnolia and agreed to acquire land for housing construction and public
services in Åkersberga in the municipality of Österåker. In a coastal
location with amazing local surroundings, we aim to develop, among
other things, some 150,000 bright square metres of BTA for housing
production at an entry value of slightly more than SEK 3,000 per square
metre. This provides conditions for affordable and attractive housing.
Financing for affordable housing
Heimstaden Bostad has signed an agreement with the European
Investment Bank (EIB) regarding an unsecured credit facil ity of
SEK 3 billion available over a three-year period. Each loan has a maximum
maturity of ten years. The purpose of the financing is to support the
construction of 3,300 affordable, highly energy-efficient homes, thereby
mitigating Sweden’s serious housing shortage. Construction will take
place in Stockholm, Nacka, Helsingborg, Lund and Sundsvall.
A quarter in line with expectations
Profit from property management for the quarter grew as expected
given the acquisitions of the past 12 months. We are also seeing
a continued positive value trend in our property portfolio in all geo-
graphical segments.
On the following pages, you will have the opportunity to read about
Heimstaden Bostad’s financial results, position and key data for the period
January – September 2019. Welcome home to the Heimstaden world!
Patrik Hall
CEO Heimstaden Bostad
5
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Significant transactions and events
Heimstaden Bostad’s property portfolio is managed under three different geographic segments – Sweden, Denmark and Norway. The total value of Heimstaden Bostad’s property portfolio amounted to SEK 89,629 million, excluding agreed acquisitions.Listed below are the significant transactions and events agreed by the Group in the third quarter, as well as the significant transactions agreed in earlier periods but where the Group has gained control of the assets in the quarter at hand.
30 September
Heimstaden Bostad AB has signed an agreement with the European
Investment Bank (EIB) regarding a loan of SEK 3 billion to build 3,300
affordable rental apartments in five Swedish cities. The project is
supported by the European Fund for Strategic Investments (EFSI), which
is the cornerstone of the Investment Plan for Europe.
The EIB will provide a credit facility of SEK 3,000 million, unsecured
and accessible over a three-year period. Each loan has a maturity of
at most ten years – denominated in SEK or EUR and at variable or
fixed interest rates.
30 August
An Extraordinary General Meeting at which the shareholders resolved to
issue a total of 30,000 new Series B preference shares. The company
raised a total of SEK 3,000 million as a result of the new share issue,
which was implemented on the same date.
6
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Växjö
Vetlanda
Ljungby
Klippan Örkelljunga
Katrineholm
Skellefteå
Umeå
Luleå
Trelleborg
Lund
YstadOdense
Århus
Triangle Region Rest of Zealand
LandskronaCopenhagen
Norrköping
Huddinge
Haninge
Linköping
Gävle
Strängnäs
Malmö
Falköping
Oslo
Uppsala
Karlskrona
Värnamo
DENMARK
SWEDEN
NORWAY
7
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
SWEDEN (JANUARY – SEPTEMBER)
Q3 2019 Q3 2018Market value, SEK m 38,774 33,962Rental income, SEK m 1,648 1,478Net operating income, SEK m 808 772Surplus ratio, % 49.0 52.2Letting ratio, housing (number), % 98.0 98.4Real letting ratio, housing (number), % 99.5 –Number of properties 763 739Area, m2 1,941,581 1,857,381
TOTAL HEIMSTADEN BOSTAD (JANUARY – SEPTEMBER)
Q3 2019 Q3 2018Market value, SEK m 89,629 68,530Rental income, SEK m 3,030 2,303Net operating income, SEK m 1,739 1,301Surplus ratio, % 57.4 56.5Letting ratio, housing (number), % 97.6 97.8Real letting ratio, housing (number), % 99.2 –Number of properties 983 896Area, m2 2,953,201 2,503,907
Folke 3, Malmö
The Group’s property portfolio is divided into different geographic administrative segments.
Our segments
SwedenThe Swedish economy continues to develop positively with modest GDP growth, rising disposable income and household consumption. Although unemployment has been declining steadily in recent years, it rose over the past quarter to 7.4 percent. The employment rate remains among the highest in the OECD.
Population growth is driving demand for housing, primarily in the metropolitan areas, which are experiencing strong growth due to the global urbanisation trend. Sweden’s population has grown by about 270,000 inhabitants over the past two years and is now at 10.2 million. According to the Swedish National Board of Housing, Building and Planning, 67,000 homes need to be built per year until 2025, while the current forecast is for only 51,000 to be completed in 2019.
With housing construction not meeting demand, the housing shortage is exacerbated. Forecasts show declining construction of tenant-owned apartments, while rental apartments continue to show favourable pace and demand. In Malmö, the pace of construction has remained unchanged over the past two years, Gothenburg showed strong growth in 2018, while the pace of construction in Stockholm fell by 35 percent last year.
RENTAL INCOME, SHARE OF HEIMSTADEN TOTAL
DEVELOPMENT IN TOTAL RENTAL INCOME, Q3 (SEK M)
DEVELOPMENT OF TOTAL MARKET VALUE, Q3 (SEK M)
MARKET VALUE, SHARE OF HEIMSTADEN TOTAL
54%
43%
0
500
3,500
2,500
2,000
3,000
1,500
1,000
2017
2018
Q3
2018
2019
Q3
2015
2016
0
2015
2016
2017
2018
2018
Q3
2019
Q3
20,000
40,000
60,000
100,000
80,000
8
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
NORWAY (JANUARY – SEPTEMBER)
Q3 2019 Q3 2018Market value, SEK m 17,433 16,454Rental income, SEK m 516 419Net operating income, SEK m 344 259Surplus ratio, % 66.7 61.8Letting ratio, housing (number), % 97.7 97.3Real letting ratio, housing (number), % 99.1 –Number of properties 84 82Area, m2 217,328 215,798
DENMARK (JANUARY – SEPTEMBER)
Q3 2019 Q3 2018Market value, SEK m 33,422 18,113Rental income, SEK m 866 406Net operating income, SEK m 587 270Surplus ratio, % 67.8 66.6Letting ratio, housing (number), % 96.4 94.3Real letting ratio, housing (number), % 98.4 –Number of properties 136 75Area, m2 794,292 430,729
Øresundsterasserne, Copenhagen Nedre gate 8, Norway
DenmarkDenmark’s economy continues to perform well compared with that of its neighbouring countries. GDP growth was solid in the first half of 2019 and current forecasts by Danske Bank are around 2.0 percent and 1.3 percent in 2019 and 2020, respectively. In recent years, the labour market has developed positively with decreasing unemployment rates due to the economic upswing. With retirement age rising and strong growth in high-productivity sectors with considerable production abroad, the decline in unemployment has stagnated in recent quar ters. Denmark’s unemployment rate was 3.1 percent in August and is expected to stabilise or even rise in the future.
Denmark’s population is expected to grow from 5.8 million in 2019 to 6.0 million in 2030, an increase of 3 percent. Copenhagen, the main contributor, is expected to grow by about 9 percent. Historic, solid population growth has exacerbated the imbalance in supply and demand, with housing shortages accumulating over time into a significant supply deficiency in the capital region.
NorwayGrowth in the Norwegian economy has been strong over the past three years and capacity utlisation has increased. The highly active oil industry has driven growth in 2019 and the growing economy creates jobs. In the second quarter of 2019, unemployment was 3.4 percent, down from 3.9 percent in the first quarter of 2019. Looking ahead, unemployment is expected to remain low. With lower growth in energy prices, consumer prices increased moderately over the past six months. Inflation for the past 12 months is close to the targeted 2 percent. Household debt ratios and house prices are at high levels, although, over the past two years, growth in debt has fallen to sustainable levels.
Home ownership in Norway is among the highest in Europe, with about 80 percent of inhabitants owning their own homes. Following strong price increases in the residential market in 2016-2017, the market has been more subdued and is now growing at a moderate pace with smaller price fluctuations than before. Strong economic growth and numerous property transactions give a healthy market with good levels of activity. The limited supply of residential rental properties means there are few private players with large stocks of rental properties and rent levels have risen continuously in recent years.
RENTAL INCOME, SHARE OF HEIMSTADEN TOTAL
RENTAL INCOME, SHARE OF HEIMSTADEN TOTAL
MARKET VALUE, SHARE OF HEIMSTADEN TOTAL
MARKET VALUE, SHARE OF HEIMSTADEN TOTAL
17%29%
19%37%
9
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Rental incomeRental income for the period amounted to SEK 3,030 million (2,303). The increase in income is primarily attributable to property acquisitions in Denmark and Norway. For the housing stocks, the average rental income was SEK 1, 435 per square metre of time-weighted area (1, 357). The increase was driven primarily by rent increases and the rent level per square metre generally being higher in Denmark and Norway.
The letting ratio for housing was 97.6 percent (97.8) for the period. The slightly lower level can be partly explained by apartments vacated
voluntarily while being renovated. Adjusted for the intentionally vacated apartments, the real letting ratio was 99.2 percent.
Property costsTotal property costs amounted to SEK 1,291 million (1,002). The change is mainly attributable to an increased volume of properties. For the housing stocks, property costs averaged SEK 611 per square metre of time-weighted area (591). The increase is primarily driven by acquisitions in Denmark and Norway, where both rental levels and operating costs per square metre are higher than in Sweden.
Consolidated Statement of Comprehensive Income
Amounts in SEK million Note
20199 monthsJan-Sep
20189 monthsJan-Sep
20193 months
Jul-Sep
20183 months
Jul-Sep
201812 months
Jan-Dec
Rolling12 months
Oct-Sep
Rental income 4 3,030 2,303 1,063 858 3,231 3,958
Property costs 5 -1,291 -1,002 -401 -340 -1,480 -1,769
Net operating income 1,739 1,301 662 518 1,751 2,189
Central administration costs -127 -105 -47 -38 -140 -163
Other operating income 10 8 4 3 14 16
Other operating costs -11 -3 -1 1 -13 -22
Profit before financial items 1,611 1,201 618 484 1,611 2,021
Financial income 6 10 14 6 4 26 21
Financial costs – interest-bearing liabilities 6 -727 -469 -262 -184 -698 -957
Other financial costs 6 -155 -95 180 -95 203 142
Financial costs, right-of-use assets 0 – 1 – – 0
Profit from property management 738 652 542 209 1,142 1,228
Change in value of investment properties 7 3,324 1,977 983 450 2,562 3,909
Changes in the value of financial instruments 8 -284 30 64 41 11 -303
Profit before tax 3,778 2,659 1,589 701 3,715 4,835
Current tax -136 -83 -70 -24 -135 -188
Deferred tax -737 -253 -283 -40 -557 -1,042
Profit for the period 2,904 2,322 1,237 637 3,023 3,605
Other comprehensive income 1,074 430 -171 -111 -442 202
Comprehensive income 3,978 2,752 1,066 526 2,581 3,807
10
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Net operating incomeNet operating income amounted to SEK 1, 739 million (1, 301) for the period, corresponding to a surplus ratio of 57.4 percent (56.5). The higher the surplus ratio is primarily explained by the acquisitions in Denmark and Norway and operational optimisation measures.
Central administration costsCentral administration costs amounted to SEK 127 million (105). The increase was mainly attributable to the growth of the organisation as a consequence of a larger property portfolio.
Net financial itemsFinancial income during the period amounted to SEK 10 million (14) and financial costs were SEK 727 million (469). The increased financial costs are mainly attributable to a larger loan portfolio as a consequence of a larger property portfolio. On the balance sheet date, the average interest rate on total borrowing, derivatives and charges for unutilised credits amounted to 1.9 percent (1.8). The increase is mainly explained by differences in the spread between bonds and bank loans, changes in underlying base interest rates and increased interest rate hedging.
The interest coverage ratio for the rolling twelve month period amount-ed to 2.1 (2.6). The change is primarily attributable to a higher average interest rate for the loan portfolio and an increase in loan-to-value ratio.On the 30th of august a new share issue of SEK 3 000 million in Heim-staden Bostad was partly used to redeem laons with relatively high interest rates. The change in the loan portfolio has not yet had full impact on the rolling twelve month interest coverage ratio.
The interest rates on approximately 49 percent (79) of the loan portfolio will change within a year. All other things being equal, a change in the base rate (Stibor, Cibor, Nibor) by 1 percent, at any given time, would, adjusted for the interest rate hedges secured, increase Heimstaden Bostad’s interest cost, by approximately SEK 170 million (211) annually in the event of an increase, and decrease it by approximately SEK 26 mil-lion (94) in the event of a decline.
The difference in sensitivity is explained by interest rate hedging and several credit agreements containing interest rate floor clauses restricting interest rate changes on the downside, such that the base rate cannot, for example, be negative while costs associated with outstanding interest rate derivatives can increase with negative market interest rates.
Other financial costsOther financial costs amount to SEK 155 million (95) and relate to exchange rate differences for loans raised in the Parent Company. The loans are primarily denominated in the same currency as the net foreign assets they finance, or are hedged via basis swaps to the same currencies as the net assets they finance. Currency effects as a result of loans and hedging are reported as Other financial costs. Exchange rate differences regarding the net assets of foreign subsidiaries are reported under Other comprehensive income. The Group’s total currency risk is limited to the net capital in each currency.
Financial costs, right-of-use assetsIn connection with the transition to IFRS 16, ground rents have been reclassified from Property costs to Financial income and costs. Ground rents paid are reported in their entirety as interest expenses since these agreements are regarded as perpetual.
Profit from property managementProfit from property management was SEK 738 million (652). The increase in profit is primarily explained by increased property holdings resulting from acquisitions.
Changes in the value of financial instrumentsIn accordance with the established financial policy and interest rate hedging strategy, Heimstaden Bostad uses interest rate derivatives and basis swaps to manage the Group’s interest rate and currency risks. The unrealised change in value of financial instruments related to changes in underlying base interest rates over the period was negative in the amount of SEK 284 million (positive 30). The nominal volume of interest rate swaps amounted to SEK 26,849 million (9,194) and the volume of basis swaps amounted to SEK 12,680 million (0). During the period, the currency effect associated with basis swaps has been moved from the item Changes in the value of financial instruments to Other financial costs and amounted to SEK 145 million. Accordingly, the currency effect with regard to loans and their corresponding hedging is reported on the same line in the Income Statement.
Change in value of investment propertiesAfter currency adjustment, the total change in value of properties amounted to SEK 3,324 million (1,977) in the Income Statement. Combined, the unrealised change in value in the Balance Sheet, excluding currency adjustments and development properties, amount-ed to SEK 3,283 million (2,711). All of Heimstaden Bostad’s three geographical segments developed positively over the year. The Swedish stocks showed an unrealised change in value of SEK 1,549 million (equivalent to 4.2 percent), the Danish stocks a change of SEK 1,099 mil-lion (equivalent to 3.4 percent), and the Norwegian stocks a change of SEK 634 million (equivalent to 3.8 percent). The changes in value are primarily explained by a lower yield requirement in the existing stocks. The yield requirement in the valuation averaged 3.53 percent, which compares with 3.75 percent at the end of 2018.
TaxIn addition to the current tax of SEK 136 million (83), deferred tax of SEK 737 million (253) is also reported. Regarding investment properties and financial instruments, deferred tax is calculated on differences be-tween reported values and cost.
Other comprehensive incomeOther comprehensive income consists of currency translation differences arising from the consolidation of the Group’s foreign subsidiaries and amounts to SEK 1,074 million (430).
11
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Consolidated Statement of Financial Position
Amounts in SEK million Note 30 Sep 2019 30 Sep 2018 31 Dec 2018
Assets
Non-current assets
Investment properties 9 89,629 68,530 72,329
Leases, right-of-use 655 – –
Financial derivative instruments 10 – – 18
Other financial non-current assets 180 165 150
Total non-current assets 90,463 68,695 72,497
Current assets
Development properties and tenant-owned apartments in progress 756 827 680
Accounts receivable 18 10 17
Other current receivables 592 580 575
Prepaid costs and accrued income 303 123 201
Cash and cash equivalents 2,381 1,894 2,313
Total current assets 4,050 3,432 3,786
TOTAL ASSETS 94,514 72,127 76,283
12
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Investment properties
As per 30 September, Heimstaden Bostad’s property portfolio had a
market value of SEK 89,629 million, compared with SEK 72,329 million
at the end of 2018. Total unrealised changes in value for the period
amounted to SEK 3,283 million (2,711). The remaining change in the
carrying amount of the property portfolio comprises net corporate and
property transactions, investments in existing stocks and exchange
rate effects.
For a more detailed description of Heimstaden Bostad’s methodology
for valuing properties, see pages 100-102 of the Heimstaden Bostad
2018 Annual Report.
Other financial non-current assets
Other financial non-current assets refer to advance payments and
deposits for agreed property transactions.
Development properties and tenant-owned apartments in
progress
In connection with the previous acquisition of Norwegian investment
properties, building rights and ongoing construction projects were also
acquired. The item, amounting to SEK 756 million (680), concerns the
development of condominium apartments in Oslo that are to be divested
upon completion.
DEVELOPMENT OF INVESTMENT PROPERTIES FOR THE PERIOD, SEK MILLION
13
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Investment properties,1 Jan.
Investment properties,30 Sep.
Investments Exchange ratedifference
Acquisitions Sales Unrealized changein value
60,000
65,000
70,000
75,000
80,000
85,000
90,000
95,000
72,329
-3
10,163
1,949
1,908
89,6293,283
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Amounts in SEK million Note 30 Sep 2019 30 Sep 2018 31 Dec 2018
EQUITY AND LIABILITIES
Equity 38,776 32,094 31,925
LIABILITIES
Long-term interest-bearing covered liabilities 32,266 35,227 26,079
Long-term interest-bearing non-covered liabilities 18,375 – 14,558
Non-current liability, financial leasing 655 – –
Financial derivative instruments 10 127 – –
Deferred tax liability 2,096 1,050 1,356
Total non-current liabilities 53,519 36,277 41,993
Current liabilities
Current interest-bearing liabilities 685 2,589 957
Accounts payable 355 280 295
Current liabilities 145 140 119
Other current liabilities 585 445 620
Accrued costs and prepaid income 449 303 375
Total current liabilities 2,219 3,756 2,365
TOTAL EQUITY AND LIABILITIES 94,514 72,127 76,283
Amounts in SEK million Share capitalOther capital contributions Retained profit
Total equity
Equity, 31 Dec 2017 19 15,245 2,801 18,066
Dividend -138 -138
New share issue 6 2,848 2,854
New share issue Pref B 1 8,559 8,560
Change in taxation
Other comprehensive income 430 430
Profit for the period 2,322 2,322
Equity 30 Sep 2018 26 26,653 5,415 32,094
Change in taxation 2 2
Other comprehensive income -872 -872
Profit for the period 700 700
Equity, 31 Dec 2018 26 26,653 5,245 31,925
Dividend -829 -829
New share issue Pref B 3,702 3,702
Other comprehensive income 1,074 1,074
Profit for the period 2,904 2,904
Equity, 30 Sep 2019 26 30,355 8,395 38,776
14
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Equity, 1 Jan. Profit fromproperty
management
Value change,properties
Value change,derivatives
Tax Othercomprehensive
income
Equity, 30 Sep.
Equityratio42%
Equityratio41%
20,000
25,000
30,000
35,000
40,000
Dividend New share issue Pref 8
31,925738
3,324 -284-874 1,074
38,776
-829
3,702
Interest-bearing liabilities At the end of the period, Heimstaden Bostad had interest-bearing liabilities amounting to SEK 51,326 million (41,593), 64 percent of which were covered by property mortgages, giving a loan-to-value ratio for covered loans of 35 percent. The loan-to-value ratio for total interest -bearing liabilities was 52 percent. Heimstaden Bostad changed its definition of loan-to-value ratio in the third quarter of 2019, and historical key data have therefore been recalculated in accordance with the new definition. Definitions of key data can be found on page 27. With deductions for cash and cash equivalents, net liabilities increased by SEK 9,665 million over the period, to SEK 48,944 million (39,279). Over the same period, the Group’s borrowing, including currency effects, had increased by SEK 9,733 million, relating primarily to acquisitions of properties in Sweden and Denmark.
Of the interest-bearing liabilities, SEK 18,375 million (10,643) refers to bond loans, SEK 20, 187 million (14,797) is attributable to mortgage bonds, and SEK 12,764 million (16, 153) refers to traditional bank loans. Unutilised credit facilities from banks amounted to SEK 8,998 million (7,043) on the balance sheet date.
The average period for which capital is tied up in Heimstaden Bostad’s interest-bearing liabilities amounted 11.6 years (8.1). The largest proportion, 21 percent (28) matures in 2022 (2020). The average
period of fixed interest, including the effect of derivatives, amounts to 2.4 years (2.6).
Deferred taxDeferred tax is calculated, at a nominal tax rate of 20.6 percent in Sweden, 22 percent in Denmark and 23 percent in Norway, on differences between the carrying amount and the consolidated cost of assets and liabilities. At 30 September 2019, deferred tax, which is the net of deferred tax assets and deferred tax liabilities, amounted to SEK 2,096 million (1,356) and was, for the most part, attributable to investment properties.
Equity Equity amounted to SEK 38,776 million (31,925), giving an equity/assets ratio of 41 percent (42). The change for the period is attributable to profit and currency, as well as a new share issue and dividends.
Heimstaden Bostad is exposed to currency risk associated with the Danish and Norwegian operations, as well as to a risk associated with the EUR with regard to financing. Debenture loans in EUR have been hedged through basis swaps to the same currency as the assets financed by the loans. The currency risk associated with the foreign operations is limited to net capital in each currency. The risk can also have a direct effect on profit thereby affecting equity.
EQUITY DEVELOPMENT OVER THE PERIOD, SEK MILLION
15
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Amounts in SEK million
20199 monthsJan-Sep
20189 monthsJan-Sep
20193 months
Jul-Sep
20183 months
Jul-Sep
201812 months
Jan-Dec
Operating activities
Profit before tax 3,778 2,659 1,589 701 3,715
Adjustments for non-cash items:
– Change in value of investment properties -3,324 -1,977 -983 -450 -2,562
– Change in value of derivative instruments 284 -30 -64 -41 -11
– Other non-cash items 99 95 -202 95 -126
Tax paid -124 -72 -36 -36 -149
Cash flow from operating activities before changes in working capital 713 674 304 268 867
Change in working capital
Change in current receivables -76 -166 222 -135 299
Change in development properties and tenant-owned apartments in progress 0 -883 0 0 -883
Change in current liabilities 55 176 90 -125 112
Cash flow from operating activities 693 -199 617 8 396
Investing activities
Property acquisitions -5,592 -21,771 -1,510 -1,742 -13,994
Investment, properties -1,845 -164 -806 -164 -1,265
Acquisitions of other non-current assets 0 -460 0 -210 -158
Deposits paid for acquisitions -144 0 0 497 -547
Property sales 3 13 0 6 13
Change in loans to associated companies -128 0 -128 0 0
Change in financial assets 0 210 -31 210 210
Cash flow from investing activities -7,706 -22,172 -2,476 -1,404 -15,741
Financing activities
New share issue 3,702 11,414 3,000 0 11,414
Dividend, preference shares -829 -138 0 0 -138
Change in interest-bearing liabilities 4,176 12,284 -193 1,108 5,738
Redemption of interest rate derivatives 0 -98 0 0 -135
Cash flow from financing activities 7,049 23,462 2,807 1,108 16,879
Cash flow for the period 36 1,091 948 -288 1,535
Opening cash and cash equivalents 2,313 763 1,424 2,189 763
Currency effect in cash and cash equivalents 33 39 10 -7 15
Closing cash and cash equivalents 2,382 1,894 2,382 1,894 2,313
Consolidated Cash Flow Statement
16
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Operating activities
Cash flow from operating activities, before changes in working capital,
amounted to SEK 713 million (674). The change compared with the
corresponding period in the preceding year is mainly explained by a
larger property portfolio and a negative effect with regard to the tax
paid. After a reduction in working capital of SEK 20 million (873), cash
flow from operating activities was SEK 693 million (negative 199).
Investing activities
Cash flow from investing activities was negative in the amount of SEK
7,706 million (22, 172). The investment activities consist of corporate
transactions, property transactions and property investments, of which
most are attributable to acquisitions in Denmark.
Financing activities
Cash flow from financing activities amounted to SEK 7,049 million
(23,462) and is explained by a change in interest-bearing liabilities. The
change is primarily attributable to a bond issue, a new share issue and
redemption of loans with short maturities.
Cash flow
Cash flow for the period amounted to SEK 36 million (1,091) and cash
and cash equivalents amounted to SEK 2,381 million (1,894) at the end
of the period.
Sømærk, Copenhagen
17
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
PARENT COMPANY INCOME STATEMENT
Amounts in SEK million
20199 monthsJan-Sep
20189 monthsJan-Sep
Central administration costs -138 -108
Operating profit/loss -138 -108
Profit before financial items -138 -108
Interest income 276 –
Interest costs -407 -107
Other financial income – –
Other financial costs -58 -95
Change in value of interest rate derivatives -157 4
Profit from property management -485 -305
Profit before tax -485 -305
Current tax – -1
Deferred tax 32 –
Profit after financial items -452 -306
PARENT COMPANY BALANCE SHEET
Amounts in SEK million 30 Sep 2019 30 Sep 2018
Assets
Non-current assets
Shares in subsidiaries 20,282 23,246
Deferred tax receivables 34 4
Receivables from subsidiaries 14,965 –
Total non-current assets 35,281 23,250
Current assets
Receivables from subsidiaries 10,897 11,653
Other current receivables 271 4
Cash and cash equivalents 1,197 1,483
Total current assets 12,342 13,141
TOTAL ASSETS 47,646 36,391
EQUITY AND LIABILITIES
Equity 27,700 24,953
Non-current liabilities
Interest-bearing liabilities – 8,356
Debenture loans 18,375 –
Financial derivative instruments 167 22
Non-current liabilities, subsidiaries 1,328 1,840
Deferred tax – –
Total non-current liabilities 19,870 10,218
Current liabilities
Current liabilities, subsidiaries – 1,191
Other current liabilities 76 28
Total current liabilities 76 1,219
TOTAL EQUITY AND LIABILITIES 47,646 36,391
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
Amounts in SEK million Share capital Retained profit Total equity
Equity, 31 Dec 2017 19 13,964 13,983
New share issue 7 11,407 11,414
Dividend, ordinary shares -138 -138
Profit after financial items -306 -306
Equity 30 Sep 2018 26 24,927 24,953
Profit after financial items 326 326
Equity, 31 Dec 2018 26 25,253 25,279
New share issue 3,702 3,702Dividend Pref B -829 -829Profit after financial items -452 -452
Equity, 30 Sep 2019 26 27,674 27,700
18
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
19
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Note 1 Accounting principles
Note 2 Information about related parties Note 3 Events after the balance sheet date
Heimstaden Bostad’s consolidated accounts are prepared in accor-dance with the International Financial Reporting Standards (IFRS) adop ted by the EU and its interpretations of these (IFRIC). This interim report has been prepared in accordance with IAS 34 the Annual Accounts Act. The Parent Company applies RFR2 Accounting for Legal Entities and the Swedish Annual Accounts Act.
The same accounting and valuation principles and calculation methods have been applied as in the most recent annual report (see pages 92 and 114 of the 2018 Annual Report for Heimstaden Bostad) with the exception of the introduction of IFRS 16 Leasing as of 1 January 2019 and currency effects associated with basis swaps, which, in the interim report have been separated and moved from Changes in the value of financial instruments to Other financial costs. Currency effects regarding Group internal loans have also been moved from Other financial costs to Other comprehensive income. Other new and amended standards are not currently expected to affect Heimstaden Bostad’s accounts to any significant extent.
New accounting principlesIn the autumn of 2017, IFRS 16 Leases was adopted by the EU. The standard came into effect on 1 January 2019 and includes both the lessor and the lessee. Heimstaden Bostad’s income consists mainly of rental income and is therefore subject to the regulations for lessors. For lessors, the regulations are predominantly unchanged, while, on the other hand, significant changes have been made to the regulations for lessees. Heimstaden Bostad has lease commitments for leaseholds, premises and vehicles.
According to the new standard, lessees must report the commitment as a lease liability in the Balance Sheet. The right to use the underlying
Heimstaden Bostad’s transactions with related parties are detailed in Notes G 8 and PC-G 6 in Heimstaden Bostad’s 2018 Annual Report.
No significant events have occurred after the end of the period.
asset during the leasing period is reported as an asset. Depreciation of the asset is recognised in the Income Statement, as is interest on the lease liability. Leasing fees paid are reported partly as interest payments and partly as amortisation of the lease liability.
Following the introduction of IFRS 16 as of 1 January 2019, Heim-staden Bostad has reported a right-of-use asset and a lease liability corresponding to the value of the right-of-use asset. From the perspective of IFRS 16, leaseholds are viewed as perpetual lease agreements, which are reported at fair value and not written off, instead the value of the right-of-use asset remains until the next occasion on which the leasehold is renegotiated. The Income Statement has been affected in that the ground rent has been reclassified from Property costs to Financial income and costs, ground rent paid is reported in its entirety as an interest expense since these agreements are regarded as perpetual. Heimstaden Bostad has leasehold or other lease agreements for land in countries other than Sweden. Heimstaden Bostad’s experience is that these agreements are normally extended and thus handled in the same way as Swedish leaseholds.
Premises and vehicles are reported at discounted values in the Balance Sheet as a right-of-use asset and a lease liability. In the Income Statement, the right-of-use asset is written off over lease term and payments made to landlord/the lessor are reported part ly as amortisations on the lease liability and partly as an interest expense in the Income Statement.
The cash flow statements are not affected by the introduction of IFRS 16 as these are based on Profit from property management.
Heimstaden Bostad applies the simplified transition method and does not apply the standard retroactively. Accordingly, in accordance with the simplified method, comparison figures for 2018 have not been recalculated.
Note 4 Rental income
%
0
90
80
70
60
50
40
30
20
10
100
20172016 2018Q3
2018 2019Q3
Housing Premises Parking
SEK m
Property costs, SEK/m2
Rental income, SEK m
Rental income, SEK/m2
SEK/m2
0
600
800
1,000
1,200
1,600
1,400
400
200
02016 2017 2018
Q32018 2019
Q3
3,500
2,500
1,500
500
1,000
2,000
3,000
3 500
2 500
mkr
Fastighetskostnad, kr/kvm
Hyresintäkter, mkr
Hyresintäkter, kr/kvm
Kr/kvm
1 500
500
1 000
2 000
3 000
0
600
800
1 000
1 200
1 600
1 400
400
200
02016 2017 2018
Q32018 2019
Q3
RENTAL INCOME
Full year refers to January – December, 12 months
Q3 refers to January – September, 9 months
Rental income, SEK m
Rental income, SEK/m2
Property costs, SEK/m2
Full year refers to January – December, 12 months
Q3 refers to January – September, 9 months
DISTRIBUTION OF RENTAL INCOME
Housing
Premises
Parking
20
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
%SEK m
Net operating income, SEK m
Surplus ratio, %
2016 2017 2018Q3
2019Q3
20180
500
2,500
2,000
1,500
1 00
70
60
50
40
30
0
10
20
4.0
3.5
1.0
1.5
2.5
2.0
3.0
2015 2016 2017 2019-Q32018
%mkr
0
500
2 500
2 000
1 500
1 00
70
60
50
40
30
0
10
20
Driftnetto, mkr
Överskottsgrad, %
2016 2017 2018Q3
2019Q3
2018
%mkr
0
500
2 500
2 000
1 500
1 00
70
60
50
40
30
0
10
20
Driftnetto, mkr
Överskottsgrad, %
2016 2017 2018Q3
2019Q3
2018
Note 5 Property costs
Amounts in SEK million
20199 monthsJan-Sep
20189 monthsJan-Sep
20193 months
Jul-Sep
20183 months
Jul-Sep
201812 months
Jan-Dec
Operating costs -719 -621 -198 -148 -893
Maintenance and repairs -303 -174 -95 -82 -270
Property administration -175 -145 -75 -70 -230
Property tax -94 -58 -33 -40 -85
Ground rent – -2 – – -2
Total property costs -1291 -1,002 -401 -340 -1,480
Note 6 Financial income and costs
Risk management, estimation and assessmentsThe Board of Directors and company management work continuously to achieve the desired risk profile, which is governed by the adopted Financial Policy and established operational targets.
Heimstaden Bostad’s operations, financial position and profit can be affected by a number of risks and uncertainties. These are described on pages 70–73 in the 2018 Annual Report. No significant changes
have subsequently occurred affecting the assessment by the Board of Directors and company management.
To prepare the accounts in accordance with generally accepted accounting principles, management must make assessments and assumptions affecting the assets and liabilities reported in the financial statements, as well as income and expense items and other dis closures. Actual outcomes may differ from these assessments.
Financial policy Policy 30 Sep 2019
Interest coverage ratio (rolling 12 months, multiple) ≥ 1.5 2.1
Equity/assets ratio (percent) ≥ 30 41
Capital tied up (months) ≥ 15 140
Loan maturity (percentage in individual year) ≤ 40 21 (2022)
Limitation, individual lenders (percent) ≤ 40 14 (Nykredit)
Fixed interest (years) N/A 2.4
Interest rate hedge (percent) ≥ 50 57
Loan-to-value ratio (percent) 45 – 60 52
Quick ratio (percent)* * ≥125 223
* Definition according to S&P guidelines
30 Sep 2019 Fixed interest, loans incl. interest-rate derivatives Fixed interest incl. interest rate derivatives 1)
Years SEK m Share, %Interest, incl.
margin, % SEK m Share, %Interest, incl.
margin, %
0–1 48,883 95.2 1.7 24,949 48.6 2.0
1–2 381 0.7 1.5 2,591 5.1 1.8
2–3 375 0.7 1.5 5,074 9.9 1.7
3–4 1,426 2.8 2.1 5,555 10.8 2.2
4–5 – – – 4,225 8.2 1.8
>5 years after balance sheet date 261 0.5 2.2 8,932 17.4 1.8
Total 51,326 100.0 1.7 51,326 100.0 1.9
1) The credit margin is evenly spread across the maturity structure
The average remaining term of fixed interest in the loan portfolio amounts to: 0.5 years
The average remaining term of fixed interest in the loan portfolio, including derivatives, amounts to: 2.4 years
Net operating income, SEK m
Surplus ratio, %
Full year refers to January – December, 12 months
Q3 refers to January – September, 9 months
Full year refers to January – December, 12 months
Q3 refers to January – September, 9 months
NET OPERATING INCOME AND SURPLUS RATIO
INTEREST COVERAGE RATIO Q3 (ICR)
21
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Change in loan volume
Interest-bearing loans, 31 Dec 2018 41,593
Repayments on loans -5,762
Currency exchange effect on loans 907
New borrowing/loans taken over 14,588
Interest-bearing loans, 30 Sep 2019 51,326
Capital tied up, loans Lines of credit
YearsSEK
millionShare,
%Interest,
incl. marginSEK
millionShare,
%
0-1 years 685 1 4.1 1,734 19
1-2 years 8,112 16 1.6 302 3
2-3 years 8,977 18 2.8 4,800 53
3-4 years 10,708 21 2.6 2,162 24
4-5 years 743 1 2.2 – –
>5 years after balance sheet date 22,102 43 0.9 – –
Total 51,326 100.0 1.7 8,998 100.0
The average remaining period for which capital is tied up amounts to:
11.6 years
Financing source
CreditSecured
credits, % Unutilised credit
commitment Share, %
Bonds 18,375 – – 30
Mortgages 20,187 100 – 33
Bank loans 12,764 100 8,998 36
Total 51,326 64 8,998 100.0
Financial instruments
Maturity, interest rate derivatives
Years Type SEK million Share, % Interest, %1)
0-1 years Paying fixed 2,916 11 0.08
1-2 years Paying fixed 2,209 8 0.24
2-3 years Paying fixed 4,699 18 0.23
3-4 years Paying fixed 5,029 19 0.36
4-5 years Paying fixed 4,325 16 0.43
>5 years after balance sheet date Paying fixed 7,671 29 0.48
Total purchased swaps 26,849 100 0.34
1) The interest rate indicates the agreed average fixed interest in the contracts. A negative interest rate indicates that we receive fixed interest.
Financial instruments
Maturity, basis swaps
Years Type SEK million Share, % Interest, %1)
0-1 years Paying variable – – –
1-2 years Paying variable – – –
2-3 years Paying variable 5,348 42 3.17
3-4 years Paying variable – – –
4-5 years Paying variable 7,333 58 2.69
>5 years after balance sheet date Paying variable – – –
Total purchased swaps 12,680 100 2.89
1) The interest rate indicates the variable agreed interest rate on the balance sheet date.
Note 7 Change in value of investment properties
Yield requirement
Years Average Interval
2018 3.75% 0.95% – 8.50%
2019 Q3 3.53% 0.87% – 8.08%
Note 10 Financial instruments
Note 8 Change in value of derivatives
Change in market value of derivatives
Market value of derivatives, 31 Dec 2018 18
Acquired derivatives –
Redeemed derivatives –
Currency effect on derivatives -6
Unrealised changes in value -139
Market value of derivatives, 30 Sep 2019 -127
Note 9 Investment properties
Change in market value of investment properties
Total Sweden Denmark Norway
Market value of investment properties, 31 Dec 2018 72,329 35,881 20,927 15,521
Sales during the period -3 -3 – –
Acquisitions during the period 10,163 314 9,692 157
Investments during the period 1,949 1,032 546 371
Currency change 1,908 – 1,158 751
Market value after transactions 86,346 37,224 32,323 16,800
Unrealised value change 3,283 1,549 1,099 634
Market value of investment properties, 30 Sep 2019 89,629 38,774 33,422 17,434
22
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
The Board of Directors and the President provide their assurance that this interim report provides a true and fair view of the operations, position
and results of the Parent Company and the Group and describes the significant risks and uncertainties that occur in the operations of the Parent
Company and the Group.
Malmö, 25 October 2019
Frans Heijbel
Chairman of the Board
Patrik Hall
CEO
Stefan Attefall
Board Member
This interim report has been subject to review by the company’s auditors.
Magnus Nordholm
Board Member
Ramsay Brufer
Board Member
23
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Heimstaden Bostad AB (publ), Corp. ID No. 556864-0873
To the Board of Directors of Heimstaden Bostad AB (publ)
Auditor’s review report
Introduction
We have performed a summary review of the summary interim financial information (interim report) for Heimstaden Bostad AB (publ) as
of 30 September 2019 and the six-month period ending on that date. It is the Board of Directors and the CEO who are responsible for
preparing and presenting this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a
conclusion on this interim report based on our review.
Focus and scope of the review
We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial
Information Performed by the company’s elected auditor. A review consists of making inquiries, primarily of those responsible for financial
and accounting matters, to perform an analytical review and to take other general review measures. A review has a different focus and
is much smaller in scope compared with the focus and scope of an audit in accordance with International Standards on Auditing and
generally accepted auditing standards.
The review measures undertaken in a review do not enable us to obtain the same level of assurance that we would be made aware of all
significant circumstances that could have been identified if an audit had been conducted. Accordingly, the conclusion expressed on the
basis of a review does not have the same degree of assurance as a conclusion expressed on the basis of an audit.
Conclusion
Based on our review, no circumstances have emerged that give us reason to believe that the interim report has not, in all material respects,
been prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the Parent Company in accordance
with the Annual Accounts Act.
Malmö, 25 October 2019
Ernst & Young AB
Peter von Knorring
Authorised Public Accountant
24
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Current earning capacity as per 30 September 2019
Amounts in SEK million
Rental income 4,377
Property costs -1,781
Net operating income 2,595
Central administration costs -155
Other operating income 10
Other operating costs –
Profit from participations in associated companies –
Profit before financial items 2,450
Financial income –
Financial costs – interest-bearing liabilities -985
Profit from property management 1,465
Key data
Surplus ratio, % 59.3
Interest coverage ratio (ICR), multiple 2.5
In the adjacent table, Heimstaden Bostad presents its earning
capacity on a 12-month basis as per 30 September 2019. Earning
capacity is not a forecast for the current year or for the next 12-month
period and should only be regarded as a theoretical snapshot and is
presented for illustrative purposes only. Current earning capacity does
not include an assessment of future trends in rent levels, vacancy rates,
property costs, interest rates, changes in value, acquisitions or sales
of properties or other factors.
Current earning capacity is based on the properties held as per
30 September 2019 and their financing. Accordingly, the current
earning capacity illustrates Heimstaden Bostad’s annual earnings on
that basis. Consequently, transactions where Heimstaden gains access
after 30 September are not included in the calculation.
Heimstaden Bostad’s Income Statement is also affected by the
development in the value of the property portfolio and future property
acquisitions and/or property sales. Changes in values of derivatives is
another item affecting profit. None of the above has been taken into
account in the current earning capacity, nor in the item Profit from
participations in associated companies.
Earning capacity is based on the contracted rental income, current
property costs and administrative costs of the property portfolio.
Costs for interest-bearing liabilities have been based on the Group’s
average interest rate on the balance sheet date, including the effects
of derivative instruments.
Current earning capacity
25
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Key data
20199 monthsJan-Sep
20189 monthsJan-Sep
20193 months
Jul-Sep
20183 months
Jul-Sep
201812 months
Jan-Dec
Property-related data
Rental income, SEK m 3,030 2,303 1,063 858 3,231
Letting ratio, housing (number), % 97.6 97.8 97.6 97.8 97.4
Real letting ratio, housing (number), % 99.2 – 99.2 – 98.6
Surplus ratio, % 57.4 56.5 62.2 60.4 54.2
Acquisitions and property investments, SEK m 10,163 21,771 4,954 1,742 24,737
Property sales, SEK m 3 13 – 6 13
Market value of properties on balance sheet date, SEK m 89,629 68,530 89,629 68,530 72,329
Number of properties on balance sheet date 983 896 983 896 916
Lettable area on balance sheet date, m2 2,953,201 2,503,907 2,953,201 2,503,907 2,627,931
Number of apartments on balance sheet date 41,308 35,886 41,308 35,886 37,337
Proportion living area on balance sheet date, % 89 88 89 88 89
Financial data
Cash flow from operating activities, SEK m 693 -199 617 8 396
Profit from property management, SEK m 738 652 542 209 1,142
Interest coverage ratio (ICR), multiple 2.1 2.6 2.1 2.6 2.6
Equity/assets ratio, % 41.0 44.5 41.0 44.5 41.9
Loan-to-value ratio (LTV), % 51.8 49.8 51.8 49.8 55
Loan-to-value ratio, secured loans, % 34.9 52.4 34.9 52.4 55
Quick ratio, % 223 – 141 – 125
Average interest rate on balance sheet date, % 1.9 1.8 1.9 1.8 1.8
Average period of fixed-interest on loans, incl. derivatives, years 2.4 1.0 2.4 1.0 2.6
Average period for which capital is tied up, year 11.6 7.6 11.6 7.6 8.1
Return on equity, % SEK 10.5 13.3 SEK 10.5 13.3 14.0
Equity on the balance sheet date, SEK m 38,776 32,094 38,776 32,094 31,925
Net asset value on the balance sheet date, SEK m 40,872 33,144 40,872 33,144 33,281
Long-term net asset value on the balance sheet date, SEK m 40,999 33,144 40,999 33,144 33,281
DEBT/EBITDA, multiple (rolling 12m) 17 21 17 21 22
Data per share
Profit per ordinary share, SEK 1,313 979 323 155 795
Equity per ordinary share, SEK 5,738 4,560 5,738 4,560 4,881
Equity per preference share A, SEK 1,377,725 1,006,269 1,377,725 1,006,269 1,365,663
Equity per preference share B, SEK 102,746 102,845 102,746 102,845 103,452
Number of ordinary shares outstanding at the end of the period 2,429,449 2,429,449 2,429,449 2,429,449 2,429,449
Number of preference shares A outstanding at the end of the period 100 100 100 100 100
Number of preference shares B outstanding at the end of the period 240,378 203,360 240,378 203,360 203,360
Average number of ordinary shares outstanding 2,429,449 2,127,504 2,429,449 2,127,504 2,204,519
Average number of preference shares A outstanding 100 100 100 100 100
Average number of preference shares B outstanding 209,157 165,505 209,157 165,505 175,177
26
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Letting ratio, housing (number), %
Leased housing divided by total number of homes.
Real letting ratio, housing (number), %
Leased housing adjusted for voluntary vacancies due to
standard improvements divided by the total number of homes.
Surplus ratio, %
Net operating surplus as a percentage of rental income
Proportion living area on balance sheet date, %
Living area divided by total property area.
Interest coverage ratio (ICR), multiple
Profit before net financial items plus financial income divided
by financial costs attributable to interest-bearing liabilities.
Calculated based on the rolling 12-month outcome.
Equity/assets ratio, %
Equity as a percentage of total assets.
Loan-to-value ratio (LTV), %
Net liabilities as a percentage of total assets.
Loan-to-value ratio, secured loans, %
Secured loans as a percentage of total assets.
Quick ratio, %
Cash and bank balances, including available credit facilities
divided by forecast net liquidity needs over the ensuing 12 months,
in accordance with Standard & Poor’s guidelines.
Definitions and glossary
Net liabilities
Interest-bearing liabilities less financial assets and cash and cash
equivalents.
Average interest, %
Average interest on the balance sheet date for interest-bearing
liabilities, with interest rate derivatives taken into account.
Return on equity after tax, %
Profit after tax (rolling 12-month outcome) as a percentage of
average equity.
Net asset value on the balance sheet date, SEK m
Equity plus deferred tax liability.
Long-term net asset value on the balance sheet date, SEK m
Equity with deferred tax liability and interest rate derivatives reversed.
DEBT/EBITDA, multiple
12-month average interest-bearing liabilities divided by profit before
financial items with reversal of depreciation.
Equity per ordinary share, SEK
Equity at the end of the period, in relation to the number of
ordinary shares at the end of the period, after preferential capital is
taken into account.
Equity per preference share, SEK
The preferential rights of holders of preference share on
liquidation of the company and the remaining entitlement to
dividends of those shares.
Profit per ordinary share
Profit for the period in relation to the average number of
ordinary shares once the preference shares’ portion of the profit
for the period has been taken into account
Definitions and derivation of key ratios can be found at www.heimstadenbostad.com
Financial informationThe year-end report for October – December 2019,
will be published on 14 February 2020
27
Heimstaden Bostad AB INTERIM REPORT January – September 2019
Published 25 October 2019
Heimstaden Bostad AB (publ), Ö Promenaden 7 A, SE-211 28 Malmö, Sweden
Corp. ID No.: 556864-0873. The company is domiciled in Malmö.
Tel. +46 (0)40 – 660 20 00, Fax +46 (0)40 – 660 20 01
www.heimstadenbostad.com
This information is such that Heimstaden Bostad AB (publ) is obliged to
disclose under the EU Market Abuse Regulation.
The information was submitted for publication under the auspices
of the contact persons below at 9:00 a.m. CET on 25 October 2019.
Patrik Hall, CEO Heimstaden Bostad AB, +46 (0)705 – 85 99 56
Magnus Nordholm, Acting CFO Heimstaden Bostad AB, +46 (0)705 – 29 31 44
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